As Imperial Sugar Co. reached a settlement Wednesday with federal regulators over safety violations associated with a deadly 2008 explosion at its Port Wentworth plant, the nation's second-largest U.S. sugar cane refiner was still working to bring the local plant back to normal operating levels.

The local refinery's total production rose from 60 percent of normal to 80 percent in the last reporting quarter, which ended March 31.

"While we were at 80 percent capacity for the quarter, we were actually at 90 percent for the month of March, so we continue to improve," said Hal Mechler, Imperial's senior vice president and chief financial officer.

Mechler didn't want to predict when the plant would be back to full operation.

"What I can say is that we're getting better day-by-day and addressing issues as they arise," he said.

Before the Feb. 7, 2008, fire and explosion that killed 14 people and injured 36 more, some 9 percent of the nation's sugar - and 15 percent of its cane sugar - was refined in Port Wentworth. Production at the refinery, which had comprised approximately 60 percent of Imperial's capacity, was effectively shut down after the explosion.

And, while the company had 225 employees back at work less than two months after the accident, the plant did not begin refining sugar again until 15 months later.

Net loss of $33.3M

In May, Imperial Sugar (Nasdaq:IPSU) reported a net loss of $33.3 million, or $2.82 per share, for the second fiscal quarter that ended March 31, 2010, compared to a net loss of $12.6 million, or $1.07 per share, for the second fiscal quarter of 2009.

Raw sugar derivatives - or futures - activity and the Port Wentworth refinery operations significantly impacted the current quarter's results, according to Imperial president and CEO John Sheptor.

"Derivatives' gains recorded in the past two quarters have substantially reversed in this quarter," Sheptor said in May.

ABOUT IMPERIAL SUGARImperial Sugar Co. is one of the largest processors and marketers of refined sugar in the United States to food manufacturers, retail grocers and food-service distributors. The company markets products nationally under the Imperial, Dixie Crystals and Holly brands. For more information, go to www.imperialsugar.com.